Contents

THE PRODUCT - Airtel Mobile Services ......................................................................................................... 4 OBJECTIVES ................................................................................................................................................... 5 Corporate Objectives ................................................................................................................................ 5 Marketing & Sales Objectives ................................................................................................................... 5 Financial & Operational Objectives........................................................................................................... 5 Customer Retention .................................................................................................................................. 5 SITUATION ANALYSIS .................................................................................................................................... 6 SWOT: ....................................................................................................................................................... 6 PORTER’S 5 FORCES .................................................................................................................................. 8 COMPANY & COMPETITOR ANALYSIS......................................................................................................... 11 Product features matrix .............................................................................................................................. 11 Objectives of Competitors: ......................................................................................................................... 13 COMPETITOR ANALYSIS .............................................................................................................................. 14 COMPETITOR STRATEGY ............................................................................................................................. 17 Applying 4P Marketing Mix to Airtel ........................................................................................................... 18 Profits ...................................................................................................................................................... 21 Value Chain Analysis ................................................................................................................................... 22 Differential Advantages .......................................................................................................................... 23 Maintain Specialty .................................................................................................................................. 23 Hope for Market Growth ........................................................................................................................ 24 Maintain Cost Advantage........................................................................................................................ 25 Outstanding Success ............................................................................................................................... 26 Market Segmentation ................................................................................................................................. 27 Targeting ..................................................................................................................................................... 28 Evaluation of Market segments .............................................................................................................. 28 Selecting a targeting strategy ................................................................................................................. 29 The Target Market Segments.................................................................................................................. 29 Positioning .................................................................................................................................................. 31 CONSUMER BEHAVIOUR ............................................................................................................................. 33 ASSUMPTION IN PLANNING PROCESS ........................................................................................................ 38 2|Page

THE PRODUCT STRATEGY ............................................................................................................................ 44 Strategy – Marketing Communications Programmes ................................................................................. 46 Integrated Marketing Communications Programs ................................................................................. 46 Pricing Strategy ....................................................................................................................................... 47 Channel Strategy ..................................................................................................................................... 48 Research Strategy ................................................................................................................................... 49 MONITORING & CONTIGENCY PLANS ......................................................................................................... 50 Recommended Marketing Strategies for Airtel .......................................................................................... 51 REFERENCES ................................................................................................................................................ 53

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THE PRODUCT - Airtel Mobile Services
Airtel Mobile services is one of the four strategic business units of Bharti-Airtel limited formerly known as Bharti-Tele Ventures LTD (BTVL). The mobile services division of the company is branded as Airtel. Going by the subscriber base Bharti is the fifth largest mobile operator in the world, with an estimated base in about 18 countries. Airtel currently offers both 2G and 3G services depending on the country of operation. It has recently secured the 3G licenses in 13 telecom circles of India and plans to launch 3G services by the month of October this year.2 The cellular services division of Airtel has also entered the smart phone market segment. On 19th October 2004 Airtel announced the launch of Black Berry Wireless Solutions in India. By August 2008 Airtel had signed up with Apple for the launch of Apple 3G iPhone services. It has however been unable to capitalise and emulate the success of Apple iPhone on the account of high pricing and contract bond accompanying these services. Considering the fact that India is now the second largest telecom market in the world and more importantly the fastest growing market globally (about 19 million additions a month), there have been several new entrants in the markets lately.3 This has led to ever lowering tariffs and a decrease in the revenue of existing players. Fresh acquisition of customers is then no longer a guarantee to increase in revenue. As a consequence in addition to the lower calling rates, the operators have been forced to provide a host of value added and auxiliary services. Here Airtel is already leading the way in areas of mobile commerce, banking etc. As the Indian telecom industry enters its third phase, growth in the markets are bound to mirror the growth in the economy. This provides valuable pointers to the next driver of growth – the rural India – where mobile penetration levels still remain an abysmal 15%.4 Airtel has been looking to expand to learn and expand in the rural/low income market segment. In this regard Airtel has already ventured into providing mobile financial services, mobile money transfers to customers in rural areas, further leveraging its existing base of cellular subscribers.

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OBJECTIVES
Corporate Objectives
To dominate the cellular services industry by being the market leader in products and services category in wireless market and lead on all important fronts viz. market share, brand loyalty and customer satisfaction.

Marketing & Sales Objectives
1. To achieve higher penetration in rural markets by capitalising on the existing base to reach out to new subscriber markets. 2. To create markets for Value added services by integrating more features into the existing scheme of things. 3. To reach out to different market segments with products and services customised to cater to the segment specific needs. 4. To study the brand loyalty within the existing set to better understand and appreciate our product differentiation. And also how we can build upon it further. 5. To engage with customers continuously to be able to adapt to the changing market needs and consumer behaviour. 6. To explore the potential for broadband data markets by exploring the scope of 2G and 3G cellular services in urban/rural markets.

Financial & Operational Objectives
1. To expand and outsource capital intensive tasks (involving building & maintenance). 2. To be able to break even on the capital spent in securing 3G licensing services by improving on the ARPU and ensuring better penetration into the SaaS market by broadband data services. 3. To ensure 3G services usage generates enough revenues per annum to enable normal pay back and returns.

Customer Retention
1. To leverage the existing base of customers by engaging them with new products and services launches on a periodic basis 2. Empower and engage with consumers on a regular basis to ensure customer satisfaction and value delivery.

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SITUATION ANALYSIS
SWOT:
Strengths 1. It is the largest cellular service provider in India with a subscriber base of over 135 million (June 2010) and market share of 29.2%. 2. Airtel is currently operating in 18 different countries in Asia and Africa which reflects its global presence. 3. Airtel is in with strategic alliance with majors from other telecom leaders like Ericsson, Nokia Siemens Network and Sing Tel which gives insight into other areas of telecommunication. 4. Mobile Business Unit of Airtel is a profit making division where profits soared by 3% to Rs. 8227 crore giving enough cash in hand. 5. Tie-ups with BlackBerry Wireless Solution, Apple Iphone 3G and Facebook give access to emerging new growth markets. Weakness 1. Airtel outsources everything except marketing and sales which makes it dependent on other players. 2. Dominance within India is limited to circles in Northern and Eastern India with high competition in Southern India. 3. Airtel focuses on nationwide advertisement strategies which give other regional players to dominate in several regions. 4. Bharti did not own majority of its own network towers which hampers the coverage area and give advantage to its competitors. Opportunities 1. With the help of its wide national presence Airtel can aggressively venture into new emerging areas like mobile banking, 3G Technology 2. Strategic position of Airtel in international market can help to acquire new business divisions in other countries to expand the business horizontally. 3. With the huge cash base Airtel can hugely invest in innovative products like Airtel Worldwide SIM and Airtel App Central which is India’s first mobile app store. 4. The company can promote its worldwide presence by sponsoring more international events like Twenty-20 World Cup and UEFA Champions League.

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Companies like Virgin and Tata Docomo are aggressively targeting younger generation with there new innovative products and applications.5. With the right regional marketing strategies Airtel can acquire the dominance in regional market and increasing the market share of the company. 7|Page . There is always a potential for entry of foreign player or revival of domestic competitor like Vodafone from Hutch. thereby reducing the market share of Airtel. Threats 1. 2.

44 16.44 261.6%. Bargaining Power of buyers.VERY HIGH a.7 Given the profit opportunities and regulatory environment.11 2008 61.48 11. threat of new entrants is high.07 2009 93.14 30. Threat of new entrants-HIGH a.79 45. Department of Telecom and the Telecom Regulatory Authority of India (TRAI) are the policy formulating and regulatory bodies. There are multiple service providers with as many as 12-13 service providers in all circles.76% 50.12 38. The sector offers tremendous growth opportunity. encouraging foreign players to enter the Indian market.17% in 2008 and 50.6 While Circle A.67 68. Lack of product differentiation.85% 44. Circle C subscription base is increasing at the fastest rate. Circle B and Metro circle is already nearing very high penetration levels.51 6.99 165.77 35.15 72.53% 58.89 18.99 28. has been following a “liberal regulatory regime” b.PORTER’S 5 FORCES Mobile Services Industry – Structure: Mobile services in India are fast growing with a YoY growth rate of 58.35% 62. but these are soon offered by competitors as well b.76 391.79 44.61 9.The product offering is similar from almost all players with the same basic product and similar value added services. The government presently allows FDI of 76% in the sector.92 52.03% 74. ensuring a high rate of increase in the overall subscription base.01 5. TRAI’s stated objective is to” encourage greater competition in the telecom sector together with better quality and affordable prices” and in line with that.06% 1.9 Subscriber base of mobile services (GSM and CDMA): 2007-2009 Service Providers Bharti BSNL Reliance Vodafone Tata Idea/Escotel Aircel Others TOTAL 2007 37.33 24 10. c.98 40. By 2012. There are short term gains that one player may have from innovation/ first mover advantage into a new value added service.76 Source: TRAI YoY over 2009 51.13 24.18% 10.01 26. Extremely low switching costs in moving from 1 service provider to another 8|Page .70% 55. 2.06% in 2009.84% 27.02 14. total telecom penetration in rural markets is expected to reach 40% compared to the current tele-density of 16.

c. Call center partners: IBM Daksh. Mobile services are competing with products such as a. Nortel. Since contracts are allocated to the highest bidder. Wired-lines b. Teleperformance. VSAT phones Additionally.Walky phones e. IT system partner: IBM c. On this front. CDMA c. Competitive landscape implies consistently better offers and deals for customers. Tower maintenance and other infrastructure: BhartiInfratel and Indus towers d. BSNL. Firstsource& Aegis 4. 3. 5. Idea are its major competitors. leased lines. Tata/ Reliance. Mphasis. Pressure from substitutes-HIGH The communications space is very dynamic with new technology (3G and 4G) and products flooding the market. Blackberry and iPad.6 9|Page . google. Hinduja TMT. Internet telephony. mobile services face a significant threat from local ISPs. Current Rivalry Airtel is the current market leader in the mobile service (GSM) sector with 31% market share. This mechanism provides Airtel with a high degree of flexibility. Video telephony d. Bargaining power of suppliers-VERY LOW Airtel outsources most of its operations. a. Multiple service providers.Skype. Huawei.very wide variety of choice for the customers. fringetc f. b. Network outsourcing/maintenance partners: Ericsson(15 circles). broadband service. data services on cellular phones have become an essential product feature. Vodafone. Siemens(7 circles). Airtel only looks at getting the best deal. d.

driven by a rise in the demand for communications from semi-urban and rural India. the total telecom subscriber base is expected to reach approximately 700 million to include about 650 million wireless users and approximately 50 million fixed line users.5 per cent with a total telephone subscriber base of 581.7 10 | P a g e . the overall tele-density was recorded at 49.6.81 million.6 By 2012. Category Capacity: As of January 2010.

Customers can SMS to multiple contacts. 7. By analyzing the table we can get a very clear idea of the strength and weakness of Airtel product relative to the other competitors. Call Divert.COMPANY & COMPETITOR ANALYSIS Product features matrix Table 1 depicts the product feature matrix to simplify the difference between the product features or services offered by Airtel Mobile as compared to other competitors in the market. Fax and Data 4. 2. mVoip or mobile Voice over Internet Protocol is an extension to VOIP through which a mobile handset can be integrated into a VoIP network 5. Apple IPhone is available in India either through BhartiAirtel or Vodafone service provider. Users can create their own groups. anywhere in the world. 6. Call wait. It includes services like Call Conferencing. Call Hold. No other service providers has given right to sell IPhone in India. It includes service like Send/Receive Emails. A user can exchange text. Mobile Office. anywhere in India. Process of receiving updates automatically on your phone without the need of initiating a request every day. communities in order to SMS all of them at the same time with reduced rates per SMS 11 | P a g e . Missed Call Alert 3. photos and emoticons. Notes (As mentioned in Table below): 1. Service that provides instant chat with friends with any mobile number.

Various Operators Mobile Normal Users GPRS Prepaid Service Postpaid Service Subscription Service1 Call Management Service2 Data Service3 SMS Directory Language SMS MMS Service National Roaming E-Recharge Business Users Blackberry m VOIP4 ISD Calling Cards Operator Services Just Dial Conversion from Prepaid to Postpaid or vice versa Customer Care Caller Tunes Voice SMS Additional Features Apple Iphone5 PC2Mobile6 Corporate Group Messaging7 Customized Chatting Client m-Commerce Phone Backup                                     No      No No                                      No       No  No            No No  Product Features                     No     No  No        No          No      No     No  No            Table: Product feature matrix of Airtel Mobile 12 | P a g e .

3) Idea: Idea is one of the few companies that are seen as an innovative. customer focused brand. 1) Vodafone Essar: Vodafone Essar is the Indian subsidiary of Vodafone group. Reliance Communications’s objectives include focus on customer delight and hence business productivity and to offer communication services in all sphere to all individual customers and business in India. With its aggressive marketing campaign it has already gained a significant amount of market share. 13 | P a g e . It also aims to expand its coverage area nationally as well as internationally to cater to more consumers. 2) Reliance:ADA Group’s flagship company. With its wide coverage area in terms of rural penetration in not only Mobile Telephony but also in broadband has contributed in achieving top position. Public Booth Telephony and Wire-line Services. 6) BSNL:BSNL is World's 7th largest Telecommunications Company providing comprehensive range of telecom services. It’s collaboration with Tata as Tata Docomo was launched in 2009. 5) Tata Docomo: Docomo is the global leader in Value Added Services. previously it was Essar who was in the telecom area since 1994. 4) Aircel: Aircel is one of the recent entrants into the telecom sector with the aim of becoming India’s pioneer in mobile technology and mobile services.Company’s main objective is to leverage the global position of Vodafone n India as well and become the top player in terms of market share as well as revenue in Indian circle. an assessment of these objectives can give a brief idea about the current strategy of the competitors and how aggressive it will be in future. BSNL is looking forward to maintain this position in coming years. And hence company is aiming to continue its growth in whole of India. Wireless Desktop Phones. Its vision is to expand its mobile operations to all sectors of people according to their individual needs.Objectives of Competitors Below are the current objectives of the competitors. Despite its late entry into telecom sector Tata Docomo is aiming at broaden its telephone services to include Mobile Services.

75% Vodafone Essar 32.01% 6.26% Bharti Airtel 1.49% 0.38% 17.78% Bharti Airtel 6.10% BSNL IDEA Aircel Reliance Telecom 21.82% 20.75% MTNL BPL 14 | P a g e .COMPETITOR ANALYSIS Presented below is the pictorial representation of Airtel's market share in Indian telecommunication market from January 2009 through April 2010. January 09 4.99% 14.94% BSNL IDEA Aircel 15.93% 23.13% 1.48% 0.57% Vodafone Essar 29.64% Reliance Telecom MTNL BPL April 2009 2.

72% Bharti Airtel 7.55% 24.12% MTNL Loop Mobile October 2009 4.83% 15.11% 1.08% 32.17% 24.07% 1.72% Bharti Airtel 7.88% 15.July 2009 4.80% 31.33% 0.00% Vodafone Essar BSNL IDEA Aircel Reliance Telecom 15.13% MTNL Loop Mobile 15 | P a g e .25% Vodafone Essar BSNL IDEA Aircel Reliance Telecom 14.25% 0.

Airtel’s closest competitor Vodafone Essar has been able to hold on to its market share.95% IDEA BSNL Aircel Reliance Telecom MTNL 15.96% Uninor Loop Mobile Stel Source of Figures: www.13% Bharti Airtel Vodafone Essar 8.16% 14. However.88% 30.coai.08% 15.64% 0.38% 30.00% IDEA BSNL Aircel Reliance Telecom MTNL 15.11% 1.08% 23.69% 0.17% 0.26% 0. This can be attributed to the entry of new payers in the cellular market.87% Loop Mobile Uninor STel April 2010 1.19% 23.77% 8.00% Bharti Airtel Vodafone Essar 3.86% 4. it is clear that BhartiAirtel has been losing market share over the last one year.com Looking at the above market share data.January 2010 1.16% 0. 16 | P a g e .67% 0. it is important to note that while all other players have been losing market share over the period.

COMPETITOR STRATEGY A brief analysis of all major competitor strategy is listed under: 1. While BSNL is the all India operator. Idea has been operating in the cellular market since the very beginning. it has entered into the other circles and is now functional in 23 circles. Ever since. 2. Aircel has seen quick growth in the last one year with its market share rising steeply from 6. 3. the market share dropped back to previous levels in the next quarter.88%. Aircel: Aircel. owned majorly by Maxis communications has been the top service provider in South India for very long. With its aggressive telemarketing campaign. majorly operates in the CDMA market and has recently entered the GSM market. Vodafone has been able to maintain its market share over the last one year. However. BSNL exploited its political clout to be the first to enter the 3G segment while its competitors waited for an auction.5 However. This may be attributed to the fact that the Reliance has not differentiated its services and has engaged in a price-war with the existing competition. Only recently. it has never been close to being the numerouno. Vodafone has concentrated on building its image as a customer friendly organization as is reflected in its tagline “Happy to help”. 5. It has not gone into aggressive marketing mode and concentrates on maintaining its subscriber base by providing the lowest call rates in the market. 6. However. It has held on to nearly 15% of market share and the number does not seem to change. Tata DOCMO has garnered market share through innovation and aggressive telemarketing. it has not been received too eagerly by the consumers. BSNL/MTNL is struggling to change its image of being the service provider for the elderly. Reliance Communication: Reliance Comm. MTNL operates exclusively in the metros. Vodafone Essar: Vodafone is a British Telecom giant and took over Hutchison Essar’s operations in India in February 2007. BSNL/MTNL: BSNL and MTNL are GoI owned telecom companies. Idea seems to be concentrating on only holding on to its market share. Tata DOCOMO which operates in 18 circles has risen to be the biggest force in the cellular market in the last one year.6 Aircel does not enter into a price war with its existing competitors. Idea’s biggest strength is its consistency.26% to 8. Indian consumer’s faith in government institutes is BSNL’s biggest advantage. Tata Docomo: Tata DOCOMO is Tata Teleservices Limited's (TTSL) telecom service on the GSM platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. It has tried to build a market for itself by providing superior service quality and value added services. in its marketing campaign there seems to be no differentiation between its CDMA and GSM services.5% to 23. Idea: Owned by the Aditya Birla Group. BSNL’s entry in the 3G segment saw an unprecedented increase in its market share from 17.5% in Q1 of 2009. adding over 60 million customers. 4. Also. 17 | P a g e .

 Internationally offers telecom services in 18 countries across Indian subcontinent and Africa. Airtel has provided its customers various facilities on the price front: a) b) c) d) Total Cost Control: Customers can recharge their phones with a denomination of their choice. pay bills or get a new handset. Airtel provides its customers with the following facilities:  Extensive presence across 23 circles  Airtel customer care touch points – setting up convenient service centres in market places helps to increase visibility and improves accessibility to customers. customer survey shows that the usability of Airtel’s online recharge portal is poor as compared to that of its competitors. Sri Lanka. 24-hour Recharge via ATM: Allows recharge of Airtel Prepaid round-the-clock at nearest ATM. However. It includes three countries in Indian subcontinent: India. The customers have the option to email Airtel directly. Internet Recharge: Airtel prepaid can be recharged online. 18 | P a g e . useful telephone numbers. They are in an advantageous position due to offers like:  Variable customer based pricing strategies  Flexible pricing mechanism Over the last few years. e) Roaming: Airtel was the pioneer in reducing roaming tariffs. payment centres and many other facilities.  Distributors like grocery stores/ small outlets etc. The major point of contact is the Airtel Relationship Centre where one can get a new Airtel connection. 3) Place: Airtel's aim is to help customers as quickly and as efficiently as possible at first point of contact. Easy Recharge: Airtel was the pioneer of e-recharge facility being provided to customers. quick links to store locations.Applying 4P Marketing Mix to Airtel 1) Product: The 'products' offered by the Mobile Services unit of Airtel include the following:  Prepaid  Post-paid  Blackberry wireless handheld  Value-added services  Solutions for business enterprises  International facilities through calling cards and prepaid world SIMs  m-commerce 2) Price: Tariff analysis of major players in the market reveals that Airtel is not the cheapest service provider. subscribe to any value added services and get more information on them.

educational facilities for marginalised children. for example.  19 | P a g e . Uganda and Zambia. Airtel is known for being the first mobile phone company in the world to outsource everything except marketing and sales. Niger. Nigeria. 2009 Airtel signed a major deal with Manchester United Football Club. This is easily visible in the following cases:   Celebrity endorsers like Shah Rukh Khan. Other than projecting the image of being the best in business. Airtel gets the rights to broadcast the matches played by the team to its customers.Bangladesh and fifteen African countries. Airtel engages in marketing activities typical of all firms of its size:    Extensive print and video advertising Tie up with leading handset manufacturers like Nokia.  Clearly. Sponsoring the Champions League is also a conscious effort of relating with the champion/best. Ghana. Sponsoring socially relevant community programs across country. Democratic Republic of the Congo. namely: Burkina Faso." On May 9. Malawi. all its celebrity endorsers are the best in their field. and Sachin Tendulkar BhartiAirtel signed a five-year deal with ESPN Star Sports to become the title sponsor of the Champions League Twenty20 cricket tournament. Airtel has consciously made an effort to make the best in business its brand ambassadors. That is because its brand Airtel is so successful. Samsung and HTC to provide Airtel connections as a part of the package. Chad. The tournament itself is named "Airtel Champions League Twenty20. Not as many people relate with Bharti as much as they do with Airtel. Airtel’s marketing team’s emphasis lies in relating with the customer and his/her idols. Bharti is now piggybacking on the success of its brand Airtel to create a giant conglomeration. Republic of the Congo. Madagascar. organising painting competitions for children. 4) Promotion: Airtel is one of the best known brands in India. As a result of the deal. concerts and boat races. Gabon. AR Rahman. Tanzania. Kenya. Manchester United is arguably the world’s best football team. Sierra Leone. Also. Sponsoring popular events like half marathons. Recently Bharti unveiled its new logo.

'Touch Tomorrow' and the current tagline 'Express Yourself'. They capture the importance of Airtel in consumers' lives. Kahinbhi'. youthful and essential.Airtel’s advertisements are always very distinct and present the brand as very energetic. Airtel came up with many ad-specific taglines like 'Kabhibhi. 20 | P a g e .

249. Operating income has.000.150.000.000. Tata DoCoMo’s plan to charge per second for calls. except in Andhra Pradesh. has enabled it to garner more subscribers1 450. in fact.229 369.000. BhartiAirtel posted net profits of Rs.000. In the non metro circles. BhartiAirtel’s revenue growth has been lesser than the industry average. Simultaneously. '000) Slower net income growth in 2010: Airtel’s net income growth has slowed in 2010 particularly in the mobile services business. For example.348 1 2 3 Figure: Total Revenues for 2009-10 (in Rs. in A circle.000. 21 | P a g e .000 100.000 50.000 350.000 - 270. net income growth has slowed considerable for BhartiAirtel in 2010. a JV of India’s Tata Teleservices Ltd and Japan’s wireless operator DoCoMo. has been capturing the new customers in the mobile services space. 93 Billion.Profits Airtel’sYoY revenue growth from the mobile services business has slowed. This may be a serious threat for BhartiAirtel. Tata DoCoMo.000 150.000.000. the subscription growth average2 for BhartiAirtel has been slower than for competitors.000 396.000 400.000 200.000.000 250.In 2009-2010. declined by 4% in 2010 as compared to a 36% rise in 2009. unlike other operators who charge per minute.517 300.615.

These are a very profitable revenue stream for the service provider. service provider. the technology/software developer retains about 25%.Value Chain Analysis The traditional mobile industry value chain basically involved the mobile operator. With M-Commerce contents becoming increasingly important in the value chain. From a strategy perspective. Source:IMRB. the network operator keeps about 60% of revenue. gaining significance. this should be one of the focus areas for Airtel. However the mobile services industry is rapidly evolving with value added services. FMCGs. while the content provider gets about 20% of the revenue from value added services (Source: IMRB Research). insurance companies to maintain a share in the value chain. device manufacturer and the customer. 2006 22 | P a g e . For example in the value added services segment. it is seen that the operator share in the value chain has been declining. Airtel has been tying up with entertainment providers. data services etc.

including the new entrants. The urban markets. typically in the mobile cellular divisions. Rcom and BSNL are the only players to gain a differential advantage on the account of existing infrastructural capability. Bharti-Airtel. 23 | P a g e . have saturated causing players to move into the digital data transfer/telemedia sectors. the DTH and Enterprise data divisions SBU’s stand to benefit from it. there are very few products/services which can be termed as premium products for the companies. Considering the market structure of the telecomm sector.Differential Advantages The following matrix can be used to analyze the industry for differential advantages for each of the companies in the wireless cellular services market. Using the existing infrastructure for Airtel-Mobile services. Maintain Specialty A high relative cost (incurred) and high differentiation area for the company. Typically requires the company to have a specialty (differentiation product/service) to serve premium products priced at premium levels. While there are several player in the market.

Commodities type of product with high cost and expected future revenues.low product/services differentiated market at higher expected costs to company. The major players in the markets and the product services they have on offer are: The market for DTH is expected to grow from 18 million currently to 35 million households by 2013. Typically include services like Direct to Home operations.Hope for Market Growth  By New Products/Services Represents . 24 | P a g e .

In recent times consolidation has been used by larger player to absorb the domestic operations on the newer entrants. 25 | P a g e . An increase in operations may bring in new subscribers. Maintain Cost Advantage The entry of new players in the telecom space has led to increased tariff wars and reduced ARPU’s. This can be observed from the fact that Tata DoCoMo and TTSL are both loss making entities at the net-level. Examples abound in BPL. By New Markets Both Reliance and Bharti-Airtel are investing heavily in the rural markets. With a Pan-India network presence Airtel is a clear leader as far as the rural subscriber base is concerned. expecting it to account for 15-20% of the ARPU. Others like BSNL and Vodafone are a close third and fourth. Spice Communications and Aircel which were sold to domestic/international players. It can be observed that RCom and Bharti are able to offer lower tariffs largely due to economies attained over the 10-12 years on the account of several factors. however to sustain the players will need deep pockets. In-addition to providing voice/text services. all major players are looking to cash in on the revenues from Value Added Services (VAS).

Not relevant to this sector.Outstanding Success Typically comprised by high differentiation and low cost to company. 26 | P a g e . Implies the freedom to compete at compete at any prices.

25100/month)  Low consumption of VAS(<Rs. Airtel can divide its customers into the following segments. emphasis has been laid on customer need and benefits sought: Segmentation Basis Benefits sought (in Rs. During segmenting customers./month) Segments included  High consumption of Value-added-services (VAS) (>Rs.Market Segmentation Using a combination of Behavioral Segmentation and Demographic Segmentation.25/month)  High level of usage (>1500 min/month)  Medium level of usage (500-1500 min/month)  Low level of usage (<500 min/month)  High (>25 calls/day)  Medium(10-25 calls/day)  Low(<10 calls/day)  Corporate customer  Individual customer  Non-users  First-time users  Ex-users  Potential users  Existing users  Extremely loyal customers  Not-so-loyal customers  Disloyal customers  Teen and youth (13-30yrs)  Matured Usage rate (in terms of minutes/month) Usage rate (in terms of no. of calls made/day) Type of usage User status Loyalty status Demographics (based on age) 27 | P a g e .100/month)  Medium consumption of VAS (Rs.

Targeting Evaluation of Market segments Of all the 21 market segments identified in the market segmentation. Evaluation of market segments is an important step towards recognizing the target market. Hence. Evaluation has been done on a 3 point scale wherein 3 is the highest and 1 is the lowest. 18 are evaluated based on current segment sales. growth rates and profitability. The segmentation based on consumer-loyalty is used to develop better marketing strategies.100/month) Medium consumption of VAS (Rs.25/month) High level of usage (>1500 min/month) Medium level of usage (500-1500 min/month) Low level of usage (<500 min/month) High (>25 calls/day) Medium(10-25 calls/day) Low(<10 calls/day) Corporate customer Individual customer Non-users First-time users Ex-users Potential users Existing users 28 | P a g e Sales 2 Growth Rates 2 Profitability 3 3 3 2 2 2 3 3 3 3 1 3 2 2 2 3 1 3 3 NA 2 NA NA 3 2 3 2 2 2 3 NA 3 NA NA 1 1 3 1 1 3 1 NA 3 NA NA 2 . The highest preference among the segments will be given to the profitability. they have been excluded from the ratings. 25-100/month) Low consumption of VAS (<Rs. Segments rating highly on the chosen criteria will be chosen as target segments. Segment High consumption of Value-addedservices (VAS) (>Rs. These segments cannot be done justice with based on the three criteria listed above.

Company resources Product variability Product life cycle Market variability Competitor’s strategy All these parameters are now analyzed individually and an appropriate targeting strategy is arrived at. undifferentiated marketing cannot be done. In the mature phase. Also. Nearly all mobile phone service providers (with the exception of Virgin) are still going for undifferentiated marketing. This is a major opportunity for Airtel to start differentiated marketing and capture specific market segments. Airtel has been rated as the most highly recognized brand of India for the past few years. Thus. 4. 5.Teen and youth (13. as a brand. 2. Bharti is one of the largest companies of India and has no dearth of resources. It is best to go for differentiated marketing. Bharti should not use Concentrated Marketing.Although the mobile phone services market is growing at a rapid pace. Airtel is in its mature phase. mobile services can no longer be classified as uniform services. Thus. looking at its large consumer base. High and medium VAS consumers 2. Airtel should target the following market segments: 1. The Target Market Segments Based on the analysis of targeting strategy to be chosen and evaluation of various market segments. 3. High and medium usage rate consumers (based on min/month) 29 | P a g e . Looking at the above factors. it is clear that Airtel should change its current target marketing strategy of mass marketing and start Differentiated Marketing.3 30yrs) Matured 2 3 1 3 2 Selecting a targeting strategy The targeting strategy can be chosen based on five parameters: 1. There is a large degree of variability that can be introduced in mobile services. its best to go for differentiated marketing. With the introduction of value-added-services. The market variability is high because of the difference in amounts and types of usage the mobile phone is put to. it makes sense to use differentiated marketing.

3. 30 | P a g e . of calls/day) Corporate users First-time users and maintaining current users Teen and youth Some of these target market segments are likely to be overlapping since they were segmented using various different criteria. High usage rate consumers (based on no. 6. 4. However. the overlap does not change the importance of any of these target segments. 5.

with the entry of new players in the market. Comm Value-service Quality of service Thus. in spite of being the market leader has gotten sucked into it. it can be seen that Airtel is perceived by the customers as a brand which concentrates on quality of service provided leading to customer satisfaction. which has resulted in a decrease in customer perception about Airtel’s services. “Touch Tomorrow” and “Express Yourself” have been the best recognized taglines of their times. This has resulted in a dilution of the Airtel brand. We can also try and categorize Airtel on a positioning-map vis-a-vis its competitors. 31 | P a g e . Unlike vodafone which has refrained from entering the price war. Airtel. a major price war has begun. Customer Satisfaction DOCOMO Vodafone Airtel Airtel Idea BSNL R. Airtel lags far behind Vodafone and Docomo in its online platforms and services. Over the years. Customer Satisfaction and Value-service (inexpensive service). Also. The following positioning map uses three criteria to position these brands – Quality of service. Airtel has repositioned itself in the minds of the consumers. Airtel’s “Live Every Moment”.Positioning Through various phases in time.

Airtel must utilize its resources and reposition itself as a high quality brand with attractive options for corporate users and youth. Given the decreasing Average Revenue per User (ARPU).Based on the customer targeting done. 32 | P a g e . Airtel needs to concentrate more on the quality of services it provides to increase profitability. Instead of fighting a price war with established players. Airtel should also come out with useful schemes to incentivize high usage.

Promotion 2) Other: Economic. The Environment 1) Marketing Stimuli : 4P's . Place. Cultural Buyer's Black Box 1) Buyer's characteristics 2) Buyer's decision Process Buyer's Response 1) Buying Attitude 2) Purchase behaviour 3) Brand and Company relationship bhaviour Figure: Model of Consumer Behavior Buyer’s Black Box To understand the buyers decision making process following data was collected from 105 respondents in Jamshedpur area.Product. 1) Monthly Expenditure on Mobile: Below is the data that we got from the respondents about their expenditure on mobile for a month. Technological. Social. The environment analysis like 4P’s has been presented before therefore we will analyze the Buyers decision making process. As we can see from the data given almost half of the consumers falls into category who spends grater than 500 rupees but less than 1000 rupees 33 | P a g e . buyer’s black box and buyer’s response. Price.CONSUMER BEHAVIOUR Below is the basic framework of Consumer Behavior process which includes 3 stages of consumer behavior segregated into the environment.

86 None 15 14.29 34 | P a g e .95 1 2 3 4 49.38 Newspaper/Magazine 3 2.52 2) Use of internet or any other method before taking a new connection: Information Search No of Respondents Percentage Internet 32 30.48 Friends/Groups 55 52.Amount (in Rs) Less than Rs 100 Between 100 to 500 Between 500 to 1000 Greater than 1000 No of Respondents 4 22 52 27 Percentage 3.52 25.71 Montly Expenditure 3.81 25.95 49.71 20.81 20.

Idea. Tata Docomo. 4) Buying of multiple mobile SIM’s: Number of SIM's No of Respondents Percentage 1 89 84.Information Search 2.00 35 | P a g e .76 2 16 15.24 3 0 0. Reliance. Uninor.38 3) Awareness of other competitors in market: After collecting data . it is known that most of the consumers are aware of the competitors in the market like Vodafone.48 2 1 52.29 30.86 14.

86 20.Number of SIM's 00 15.76 5) Post purchase behaviour.rating of Airtel services: Rank 1(Best) 2(Good) 3(Average) 4(Poor) 5(Worst) 21 24 35 22 3 14 28 38 23 2 11 13 39 35 7 39 20.29 0 2.29 36 | P a g e .33 1 19.24 1 2 3 4 84.33 4 5 19.29 33.86 Features Coverage Call Charges Schemes Customer Care Percentage Rank Distribution % 2.29 28 33.24 1 2 3 24.24 37 24.

We can see from the Consumer Research that most of the respondents areusing Airtel but they are just using it because it is available in the market at theaffordable and comparative prices. As we can see from the result above the buying behavior of the customer is dependent on the involvement and difference between brands which is similar as given in figure below. Involvement of Consumer High Involvement Difference between brands Low Involvement Significant Complex Dissonance reducing Variety Seeking Few Habitual buying Figure: Four types of buying behaviour 37 | P a g e .

ASSUMPTION IN PLANNING PROCESS Market potential: Planning and management of mobile services requires an understanding of the factors that are responsible for the evolution of the market. Steps were taken to allow private players in telecom domain1. 2. 3. 4. 38 | P a g e . The manufacturing sector opened in 1984 . timing and speed of adoption. The most important factors for the purpose of capacity planning are market potential. established in 1997  NTP in 1999 stimulated migration from high-cost fixed licence fee to a low-cost revenue sharing regime . This provided impetus for development of telecom sector:  The industry transited from monopoly to duopoly. Infact the first mobile phone call was made in India in 1995 on a Nokia phone over Nokia network. The telecom sector was predominantly under public sector control at this time. Policy environment started changing from 1994 onwards. India ranked 14th in the world in 1995 in terms of number of main telephone lines1. BhartiAirtel was founded in 1995 as a public limited company4. this was a momentous era due to following reasons: 1. Mobile phone manufacturing firms (Nokia) started its operations in 1995 3. as the Government mandated two fixed and two mobile operators in each circle in 1995  Independent regulator. From the point of view of telecom potential in India. TRAI. National telecom policy was announced in 1994.

owing to development of better technologies and dissemination of information many people consumethe innovation and the diffusion process further unfolds. During this time when Airtel just started. Also it is important to develop understanding of future trends. The effects of adoption of liberalization policy were starting to show. 39 | P a g e . cellular mobile telephones subscribers in India were around 77 thousand in 1995. During the initial stages only a few members of the society adopt the innovation.This was the most crucial time for players who wanted to make a niche in telecom sector in India. Gradually. In 2002 this figure was around 14. Mobile density was close to 0. These are the people who are highly involved in buying process and like to experiment and are the first adopters of new technologies and innovations. In fact. during the maturing phase. the rate of diffusion goes down and diffusion curve reaches a saturation level. New technologies were being adopted by India. started in the late 90's in India. Successful innovations tend to follow a sigmoid or S-shaped curve. the overall development of telecom industry.6 and has tremendously increased since 1. be able to develop reasonable estimates of patterns and rates of adoption etc. Finally. private participation was increasing and being encouraged by the conducive policies of government.003 in 1995. For this it is important to know about the theoretical models of diffusion of innovations in the market. The proportion of cellular subscribers total number of telephone subscribers (basic plus cellular) was 0. Forecast Assumptions: The most important criteria for establishing business in a capital intensive sector like telecom is correct analysis of market demand and potential. in terms of overall size of sector and advancement of technologies used.6 percent in 1995.

Figure: Innovation Life Cycle Hence. The assumptions used in the analysis are: 40 | P a g e . Hence. Figure: Projections of Mobile Density in India Using these growth and market potential may be forecasted and analysed. Logistic and Gompertz sigmoid curves are the most commonly used ones. it can be hypothesized that mobile density growth can be modeled on a sigmoid or Scurve. forecasting and modeling may be done using them.

profitability was definite. With government policy impetus. The studies done on Indian mobile sector using different models confirm the theoretical pattern of growth. Also. BSNL and now in many areas Tata Docomo and Reliance GSM. b) The strategy must reflect the company's mission and must be used to achieve the goals set by management. Other Assumptions: a) The marketing and business strategies must be aligned over the short. c) This requires extensive research and analysis by the company as described above. d) The company must obtain inputs primarily on the following: 1) Competitive threats: no major threats when Airtel started operations. Airtel has no dearth of profitable opportunities with 15 African nations' markets in its pockets. Its sales increased by 17% while EBITDA rose 3% in the first quarter of 20107. its main competitors are Idea. intense price competition in the market combined with growing mobile penetration offer a unique profitabile scenario. 3) Areas of market growth. Vodafone. India's market is still growing and will continue to do so for another 10 years at least before it reaches maturity phase. Currently. Airtel still occupies a mjor chunk of Indian market (~ 30%). maturity and decline: commencement of Airtel operations along with many other incidents was responsible for developing Indian telecom market. c) Late adopters are mostly developing countries and they show a lesser reliance on fixed line phones due to high infrastructure costs. When it started operations. with its Zain acquisition. In fact it was one of the earliest private players and had considerable first-mover's advantage. intermediate and long planning horizons. Currently. b) Early adopters are usually developed countries and they show a lesser reliance on mobiles due to high switching costs.a) For any country the saturation level will depend on whether it is an early or late adopter of the technology. 2) Profitable opportunities: immense scope for profit when it started as entire untapped market was waiting to be catered to. d) Various mathematical models are used by companies to forecast demand and growth patterns. the 41 | P a g e .

Besides. Its net income shrank to 16.metros were the main and focal areas of growth.7 billion rupees a year ago7. Of late mobile operators are increasingly venturing into internet and other wireless services along with a variety of value added services. Recently. Airtel has invested heavily in infrastructure and marketing campaigns to promise and deliver quality communication facilities. It was the first to offer lifetime prepaid connections. Indian market already boasts of having the lowest mobile tariffs in the world according to International Telecom Union. the focus is on maintaining quality of service in cities while expanding base in rural areas. Recently. Mobile banking especially microfinance in rural areas is an example of such innovation. It also keeps launching a lot of full talk time and various discounted call-rate and messaging schemes from time to time. Figure: Customer Needs Analysis 4) Latent and explicit customer needs:telecom industry particularly cellular operations and services have long transcended the basic utility of communication. intense price wars and more number of players in the market led to a loss of 32% in its profit. the onus is on the operator to identify and provide new services. 42 | P a g e .8 billion rupees in the first quarter that ended on June 30. 2010 form 24. Airtel aggressively revamped its pricing and marketing strategies to become more competitive. It also offered differential pricing based on time of call. Currently. it also reduced the call rates on national roaming especially on incoming calls. As the average customer is likely to be quite removed from the intricacies of mobile technology. special schemes and discounts offered vary between circles based on needs of customers in that area. 5) Ideas for distributing and pricing: even though Airtel is competitively priced.

and franchisees and company owned Relationship Centers which are 'one-stop solutions' shops'. Figure: Cellular Operator Distribution Channel 43 | P a g e . wholesalers. The distribution channels under the company include Direct Selling Associates. Franchisee Selling Associates and Airtel Relationship Centers. Corporate Selling Associates. Example: for prepaid connections in all circles distributors and franchisees are paid 15-20% of the value of card sold. Airtel also offers sales based remuneration to its distributors and franchisees.Airtel has maintained a dedicated and strong distribution channel by way of distributors.

BhartiAirtel’s product focus is three fold within the mobile services space with a view to provide a differentiated product to its customers:  Provide high quality cellular service to its customers and expand its network across the country. Airtel’s profits in this category have been growing yoy. it is a challenge to maintain its market share in view of the consistently evolving technology and high degree of competition. additional facilities and MCommerce.THE PRODUCT STRATEGY Airtel’s mobile (GSM/CDMA) SBU is a cash cow for Bharti. STAR QUESTION MARK Market Growth CASH COW DOG Market Share BhartiAirtel’s product strategy revolves around maintaining its “Star” status in the market. the focus was on providing the mobile connection while now the focus has shifted to enhancing the customer’s experience on his mobile phone. The Product Line: BhartiAirtel’s product line has changed over the years. In the 1990s. Airtel’s mobile SBU presently serves more than 130 million customers across India. It is an established product category with high market penetration and high profitability. This explains Airtel’s focus on value added services. 44 | P a g e . Though Airtel is the overall market leader in India.

Freedom Plan).Zain in Africa. With a high level of market penetration in the urban areas. E. 45 | P a g e . M-Commerce are a part of Airtel’s product development strategy. Market Development:Airtel is creating new markets via its inorganic growth strategy. Market Penetration: Airtel is expanding its rural footprint and targets greater market penetration in rural India where more than 60% of the potential is untapped. blackberry services. STD calling. Airtel is looking to expand its footprint in rural India with a large untapped market. Provide innovative services and features to enhance customer experience on their mobile phones (Value Added Services). Features such as M-Commerce and plans such as Freedom plan and advantage plan are expected to help reach this market segment.  Providing additional facilities to its valued customers (International calling. cheaper roaming rates.g. Growth Strategy: Existing Market Market Penetartion Product Development New Market Market Development Diversification Existing Product    New Product Product Development: The Value added services.

Added emotional appeal to the brand.Rahman Airtel musical Signature tune to increase brand recallability Clear focus on emotions. The IMC programs used by the company have been:  Advertisements: A large chunk of the budget used for the promotion of the Airtel brand especially in the mobile telephony has been used creating and distribution of ads. In-fact the theme of each of these has also changed. "The power to keep in touch" "Airtel celebrates the spirit of leadership" "The first choice of the corporate leaders" "Touch tomorrow" Change from regional to pan-India outlook.Strategy – Marketing Communications Programmes Integrated Marketing Communications Programs Integrated marketing communications (IMC) is a mix bag of communication strategies used to convey a holistic and consistent image of the company. Expanding to new segments. Projected as an aspirational and lifestyle brand. Associated with leadership. Several youth icons hired as brand ambassadors Intent on giving brand a Human touch.performance and dynamism. "Live every moment" Appeal to the masses.R. Value Communicated: Their promotion and advertising strategy has evolved over time as:  1995-98 Positioning in premium catageory. 1999-2001 2001-02 2003-10 Change . "Express Yourself" Figure: Value Communication over the years 46 | P a g e . establishing the brand as a quality of life product.New telecom policy of 1999 replacing license fee with revenue sharing scheme. Famous A. aimed at targeting the elite. Airtel has used several IMC programs to including both offline and online marketing channels to identify customer insights and develop the right strategy to forge a strong brand-customer relationship.

 Product Line Pricing: Pricing to reflect benefits of the individual components of the plan.eRs. Most topups in like SMS packs. easy recharges.com).  Umbrella Marketing: Use of umbrella marketing by Bharti-Airtel to promote several of the its products namely Airtel broadband. Airtel Live etc. to further the visibility of its brands. Monthly GPRS. media channels (MTV). blackberry option.etc. 30/-. 47 | P a g e .Airtel Silver Credit Card) etc. apply for new connections and touch and feel new handset models.  Customer Relationship Strategy: First cellular service provider to start customer call centres (Airtel Connects) where customers could pay their bills.etc.  Co-Branding: Airtel has done several ties ups with online community sites (Hungama. This has however also led to buy-outs of several new entrants on the account of falling APRU’s. at different stages in its growth can be classified under:  Penetration Pricing: Done by Airtel in response to the aggressively lower pricing-tariff strategies adopted by new entrants like DoCoMo and Reliance. Modelled as one-stop shop to all customer solutions and queries. 10/-. Pricing Strategy Some common strategies used by Airtel over the years.  Price Skimming: Adopted by Airtel during the initial years when competition was limited and scope for expansion limited. and tariff and broadband plans at Rs 99/-. 60/. Credit cards (ICICI Bank . Though product innovations continue as hello tunes. The strategy has become irrelevant in recent times on the account of increased number of competitors in the market. The price wars have escalated in the recent times. Product to Services Branding: Shift in the strategy from product based to Services based branding. DTH under one single Brand name. are aimed at getting emotional rather than rational appeals. 999/. publicprivate (Incredible India-Taj-Hotels-Airtel-Cox & Kings).  Psychological Pricing: Most of the value recharge at smaller denominations i. The brand was projected to the elite and corporate as a symbol of leadership and excellence. fall under this category. GPRS.

are helping win networks and further consumer bases. Promotional Pricing: Used at several occasions to promote a new tariff plan. mobile advice on better agriculture techniques etc. Several initiatives in this regards i. Further plans of expansion in semi-urban India. retailers. and mushrooming number of service providers makes the distribution networks all the more important. the only sustainable competitive advantage can come from the strategy/means used to sell. When each company in the telecomm sector is selling similar products and virtually the same pricing and at same cost incurred. A definitive advantage to this can come by selecting the appropriate mix of distribution channels – direct sales force. Internet etc.e. Some of the initiatives taken by Airtel in this regard include:     Customer Relationship Centres Facility for Mobile banking (using m-cheques) Recharge using pre-paid and Magic coupons Airtel Live using Internet In addition to these Airtel is rapidly looking to expand in Rural India and in this regard is energizing its sales force network and distribution centres (at local Kiryana’s) to better understand the customer base. 48 | P a g e . Roaming charges etc. agents. Channel Strategy Channel Strategy comes as of extreme importance due to the high services oriented nature of the telecomm industry. Value added service. real time pricing of farmer produces in the markets (getting quotes).

Research Strategy The typical marketing research methodology adopted by Airtel and others in the telecommunications industry includes: •Density •Affluence •Age Population Purpose •Hypothesis testing Publications •Sales and ditribution reports •Competitors annual reports Procedure •Sale at retail outlets •Customer relationship centers Figure: Research strategy matrix 49 | P a g e .

e.  Problem 2: If we consider the growth in market share of the company. Airtel can either go for pricing strategy where the prices can be made cheaper vis-à-vis other competitors Or the company can focus on promotion of its service in rural market in an aggressive manner. there is good chance that the competitors like Vodafone. Therefore. and prepare recommendations and potential adjustments to our marketing mix to ensure our leading market position and healthy sales are maintained in the long-run.MONITORING & CONTIGENCY PLANS A marketing strategy should always have a contingency plan for situations when they could go against the planned strategies. 50 | P a g e . refrain from adopting Airtel as there mobile channel partner    For tackling this problem . there is also a possibility of adopting new offers specially catering to rural sector and scrapping off some features which are not useful to rural market Problem 4: When we consider of adopting new technologies to improve the service offered by Airtel which is in tune with the objective of this marketing strategy. Idea came up with new technology like 3G much earlier than Airtel  Carefully monitor major competitors pricing and promotional activities and entry into the 3G market. then there is a possibility of entering of new firms and eating up market share. and ultimately increase sales demand through word-of-mouth promotion This will not only create the awareness of the new offers introduced by Airtel in the market but also it will help to analyze or estimate the market perception of any type of new addition.  For stopping of new entries into this segment the only thing is to increase the entry barriers but since in this market the competitors are so many that there is always a good chance of emergence of new competitors. Moreover. Following are the points that should be taken in consideration while thinking of making a contingency plan.  This problem can be solved by adopting the promotional or free trial offer marketing strategy where the new offers can be provided to selected customers to stimulate brand and product awareness. the new mobile offers and packages are not successful or able to compete with the other competitor’s strategies. Problem 3: Expansion in rural areas where the hold of Airtel is not much as compared to other competitors. Problem 1: If for any reasons the new launches done by Airtel i. this problem can be solved by product differentiation both in vertical as well as horizontal direction.

This is a proven way of expanding customer base and has been exploited by Reliance Communication and Tata. Build strong corporate contacts and offer more benefits for corporate users. In the foreseeable future. 51 | P a g e . This is going to be the biggest cash generating segment and Airtel must consolidate its position here. VAS has emerged as the most important source of revenue for mobile operators. Any further aggressive pricing strategies on Airtel’s part will only do further damage. With the ongoing price war. Airtel’s marketing team needs to innovate constantly. The conservative nature of the typical rural Indian consumer must be kept in mind.  Airtel must differentiate services for consumers with high usage rates by providing them special band-width such that they do not face increasing problems like call-drops and network-jams. Concentrate on the untapped rural market segment. the price levels have become unsustainable anyways. Airtel should aggressively increase its network in the rural sector and market itself before other players enter the market in a big way. The first mover is bound to get an advantage.Recommended Marketing Strategies for Airtel With the entry of multiple new players in the sector and an ever decreasing ARPU.     Provide special incentives for Airtel-Airtel calls. Decreasing prices further is not going to help retention of customers.  Airtel must ensure that it does not lose its current users to competitors. Providing more useful value added services (VAS). Airtel needs to further its efforts of providing users the best possible VAS. This can be achieved by entering into tie-ups with various companies. This can be ensured by increasing quality of service provided. the marketing team must emphasize on the following aspects:  Refrain from using pricing as a marketing tactic. This can result in a major source of revenue for Airtel and will do wonders for customer satisfaction and customer perception of brand quality.

 Airtel must position itself as a youth brand. Most new consumers getting added to the mobile services market are young teenagers who should perceive Airtel as their first choice. Also. given India’s age based demographics. maintaining a high youth penetration is extremely important. 52 | P a g e .

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April 2010 (c) Manas Bhattacharya (IES). Sanjay Singh.(b) Kotler. Inc . Reports and Reference : (a) The Hindu . John Wiley & Sons. Dr. 2003 54 | P a g e . Committee on India: Vision 2020 – Telecom Sector in India: Vision 2020 (d) Sanjay Singh. ISBN 0-471-26867-4 3.Survey of Indian Industries – 2010 (b) Indian Brand Equity Foundation – Telecommunications Report. Marketing Insights from A-Z. The diffusion of mobile phones in India.